[270711.EN.SEA] APMT Indonesia Calls For Greater Port Development

APM Terminals is urging Indonesia to invest in its port and inland transportation infrastructure to keep up with the nation's growth and development requirements.

The terminal operator's Asia Pacific regional director of Portfolio Management, Michael Lund Hansen, said: "Indonesia is not growing at its full potential, because economic growth in Indonesia faces infrastructure challenges," he said to the Indonesia International Conference-Focus On Indonesian Economy 2011.

The event was attended by Indonesian President Susilo Bambang Yudhoyono, a keynote speaker, with many Indonesian government officials among conference participants and audience members.

During the conference several keynote speakers focused on the importance of public-private partnerships to address the pressing need for infrastructure investment in Indonesia, a company statement said.

According to Mr Hansen, five out of the six major Indonesian container ports, which combined handle 90 per cent of Indonesian container traffic, are currently operating above capacity, "reducing efficiency and adding to logistics costs, risking the loss of international trade to lower-cost rivals."

He stressed that APM Terminals strongly believes in public private partnerships and that APM Terminals is committed to investing in Indonesia.

Tanjung Priok and Tanjung Perak, Indonesia's largest box ports, handled 4.7 and 3 million TEU respectively in 2010. The economy of Indonesia, with a population of 240 million, expanded by 6.1 per cent in 2010, and is projected to grow to US$842 billion in 2011. Economic growth of 6.2 per cent in 2011 and 6.5 per cent in 2012 have been forecast by the International Monetary Fund for Indonesia.

Indonesia's current's overall annual container throughput capacity is 11 million TEU.

Based on projected growth rates, Mr Hansen advised that Indonesia will require a minimum of six to seven million TEU of new container capacity by 2015, or an additional 15 million TEU of container capacity by 2020. Mr Hansen urged that the time to get the construction of such facilities started is now.

Source : HKSG, 27.07.11